Sen. Sanders Introduces Estate Tax Act

February 1, 2019.  Sen. Bernie Sanders of Vermont has introduced legislation that would reform the federal estate tax.  Currently, an individual is entitled to a combined lifetime gift and estate tax exemption of $11,400,000.  The federal tax is 40% on gifts and estates that exceed this threshold.
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Sen. Sanders’ bill would reduce the combined lifetime gift and estate tax exemption to $3,500,000.  It would impose a 45% tax on the value of an estate between $3,500,000 and $10,000,000, a 50% tax on the value of an estate between $10,000,000 and $50,000,000; a 55% tax on the value of an estate between $50,000,000 and $1,000,000,000, and a 77% tax on the value of an estate above $1,000,000,000.